USD/CAD Technical Analysis: Bearish breakdown on hourly chart

The USD/CAD has suffered a downside break of the sideways channel on the hourly chart, which indicates the rally from the Oct. 16 low of 1.2916 has likely made a temporary top at 1.3132.
The 50-hour, 100-hour and 200-hour exponential moving averages (EMAs) are rolling over in the favor of the bears. Further, the 50-hour EMA is crossing the 100-hour EMA from above in favor of the bears.
The hourly RSI is printing bearish below 50.00.
As a result, the pair looks set to test the 10-day EMA of 1.3148.

Omkar Godbole FXStreet Contributor

Hourly Chart

As seen in the daily chart below, the pair failed to take out the falling trendline from June highs and September highs, establishing the diagonal line as the key level to beat for the bulls in the near-term.
A break above that resistance line would validate the bullish RSI and open the doors to September highs above 1.3220.

Daily chart

Spot Rate: 1.3076

Daily High: 1.3088

Daily Low: 1.3070

Trend: Bearish

Resistance

R1: 1.3088 (session high)

R2: 1.3120 (falling trendline)

R3: 1.3226 (September high)

Support

S1: 1.3048 (10-day EMA)

S2: 1.3005 (100-day EMA) - 1.30 (psychological support)

S3: 1.2954 (200-day EMA)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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